RVBD » Topics » Acquisition-Related Contingent Consideration

This excerpt taken from the RVBD 10-Q filed May 5, 2009.

Acquisition-Related Contingent Consideration

The fair value measurement of the acquisition-related contingent consideration is based on significant inputs not observed in the market and thus represents a Level 3 measurement as defined in accordance with SFAS No. 157. The estimated fair value, as of the acquisition date, of acquisition-related contingent consideration of $9.9 million includes amounts to be distributed directly to shareholders, discounted at 13%, but excludes a fair value estimate of $3.8 million to be paid to former employees of Mazu. As of March 31, 2009, the fair value of the acquisition-related contingent consideration was $10.4 million, which includes a fair value adjustment to the acquisition-related contingent consideration amounts to be distributed directly to shareholders due to the passage of time and the portion of the contingent consideration to be paid to former employees of Mazu that was recognized during the period.

 

5. INVENTORY

Inventory consists primarily of hardware and related component parts and is stated at the lower of cost (on a first-in, first-out basis) or market. Inventory is comprised of the following:

 

(in thousands)

   March 31,
2009
   December 31,
2008

Raw materials

   $ 394    $ 544

Finished goods

     5,738      7,545

Evaluation units

     2,605      2,548
             

Total inventory

   $ 8,737    $ 10,637
             

 

6. GOODWILL AND INTANGIBLE ASSETS
This excerpt taken from the RVBD 10-Q filed Apr 30, 2009.

Acquisition-Related Contingent Consideration

The fair value measurement of the acquisition-related contingent consideration is based on significant inputs not observed in the market and thus represents a Level 3 measurement as defined in accordance with SFAS No. 157. The estimated fair value, as of the acquisition date, of acquisition-related contingent consideration of $9.9 million includes amounts to be distributed directly to shareholders, discounted at 13%, but excludes a fair value estimate of $3.8 million to be paid to former employees of Mazu. As of March 31, 2009, the fair value of the acquisition-related contingent consideration was $10.4 million, which includes a fair value adjustment to the acquisition-related contingent consideration amounts to be distributed directly to shareholders due to the passage of time and the portion of the contingent consideration to be paid to former employees of Mazu that was recognized during the period.

 

5. INVENTORY

Inventory consists primarily of hardware and related component parts and is stated at the lower of cost (on a first-in, first-out basis) or market. Inventory is comprised of the following:

 

(in thousands)

   March 31,
2009
   December 31,
2008

Raw materials

   $ 394    $ 544

Finished goods

     5,738      7,545

Evaluation units

     2,605      2,548
             

Total inventory

   $ 8,737    $ 10,637
             

 

6. GOODWILL AND INTANGIBLE ASSETS

EXCERPTS ON THIS PAGE:

10-Q
May 5, 2009
10-Q
Apr 30, 2009
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